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167 <br /> Phase I Environmental Site Assessment <br /> 5824 Morrow Mill Road <br /> Chapel Hill, North Carolina s <br /> S&ME Project No. 22580189 111 E <br /> approximately 12S acres and is comprised of the one parcel identified as Orange County parcel identification <br /> number(PIN) 9739624313. <br /> The Phase I ESA was conducted using the American Society for Testing and Materials (ASTM) E 1527-13, Standard <br /> Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process and in accordance <br /> with S&ME Proposal No. 22580189 dated July 28, 2022. <br /> 1.1 Purpose <br /> The User of this report is the Triangle Traditional Music and Dance Retirement Society. The purpose of the Phase I <br /> ESA is to identify, pursuant to ASTM E 1527-13, recognized environmental conditions, controlled recognized <br /> environmental conditions, and historical recognized environmental conditions in connection with the subject <br /> property. It is S&ME's understanding that the Phase I ESA is being conducted as pre-development due diligence. <br /> ASTM defines the term recognized environmental condition (REQ as the presence or likely presence of hazardous <br /> substances or petroleum products in, on, or at a property: (1) due to any release to the environment; (2) under <br /> conditions indicative of a release to the environment; or(3) under conditions that pose a material threat of a <br /> future release to the environment. The term includes hazardous substances or petroleum products even under <br /> conditions in compliance with laws. <br /> ASTM defines the term controlled recognized environmental condition (CREC) as "a recognized environmental <br /> condition resulting from a past release of hazardous substances or petroleum products that has been addressed <br /> to the satisfaction of the applicable regulatory authority (for example, as evidenced by the issuance of a no further <br /> action letter or equivalent, or meeting risk-based criteria established by regulatory authority), with hazardous <br /> substances or petroleum products allowed to remain in place subject to the implementation of required controls <br /> (for example, property use restrictions, activity and use limitations, institutional controls, or engineering controls)". <br /> ASTM defines the term historical recognized environmental condition (HREC) as a past release of any hazardous <br /> substances or petroleum products that has occurred in connection with the property and has been addressed to <br /> the satisfaction of the applicable regulatory authority or meeting unrestricted use criteria established by a <br /> regulatory authority, without subjecting the property to any required controls (for example, property use <br /> restrictions, activity and use limitations, institutional controls, or engineering controls). <br /> ASTM defines the term business environmental risk(BER) as a risk that can have a material environmental or <br /> environmentally driven impact on the business associated with the current or planned use of a parcel of <br /> commercial real estate, not necessarily limited to those environmental issues required to be investigated in this <br /> practice. Consideration of business environmental risk issues may involve addressing one or more non-scope <br /> considerations. <br /> The terms do not include de minimis conditions that generally do not present a threat to human health or the <br /> environment and that generally would not be the subject of an enforcement action if brought to the attention of <br /> appropriate governmental agencies. Conditions determined to be de minimis conditions are not recognized <br /> environmental conditions nor controlled recognized environmental conditions. <br /> August 25, 2022 2 <br />